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Chapter Tax 61
RETAILERS
Tax 61.01 Purpose.
Tax 61.02 Definitions.
Tax 61.03 Procedure for selecting and renewing contracting retailers.
Tax 61.04 Criteria for selecting retailers.
Tax 61.05 Fidelity bond.
Tax 61.06 Certificate of authority.
Tax 61.07 Contract denial appeal procedure.
Tax 61.08 Retailer contract terms and conditions.
Tax 61.085 Retailer performance program.
Tax 61.09 Limitation on length of suspension.
Tax 61.10 Appeal procedure.
Tax 61.25 Discretion of enforcement.
Ch. Tax 61 Note Note: Chapter LOT 5 was created as an emergency rule effective June 17, 1988. Chapter LOT 5 was renumbered chapter WGC 61 and corrections made under s. 13.93 (2m) (b) 1. and 6., Stats., Register, March, 1995, No. 471. Chapter WGC 61 was renumbered chapter Tax 61 under s. 13.93 (2m) (b) 1., Stats., and corrections made under s. 13.93 (2m) (b) 7., Stats., Register, October, 2000, No. 538.
Tax 61.01 Tax 61.01 Purpose. The purpose of this chapter is to provide the administrator with the procedure and criteria for selecting retailers to sell lottery tickets, to establish the retailer's duties and obligations under the contract, to provide the administrator with the procedure and criteria to terminate or suspend the retailer's contract and to provide the applicant and retailer an appeal procedure if a contract is denied or a contract is terminated or suspended.
Tax 61.01 Note Note: Section Tax 61.01 interprets ss. 565.10 and 565.12, Stats.
Tax 61.01 History History: Cr. Register, March, 1989, No. 399, eff. 4-1-89; CR 01-088: am. Register February 2002 No. 554, eff. 3-1-02.
Tax 61.02 Tax 61.02 Definitions. In this chapter:
Tax 61.02(1) (1) "Administrator" means the administrator of the department's lottery division or any designees.
Tax 61.02(1m) (1m) "Billing procedure" means the procedures used to collect revenue due the lottery by retailers consistent with s. 565.10 (15), Stats.
Tax 61.02(2) (2) "Commencement of a game" means the date, designated by the administrator, on which lottery tickets for a particular game under sub. (3) shall go on sale to the general public.
Tax 61.02(3) (3) "Lottery ticket" or "lottery share" means one of the following types:
Tax 61.02(3)(a) (a) For instant scratch ticket games under s. 565.01 (6m) (a) 1., Stats., a chance received for consideration that may entitle a player to a prize as a winning ticket under sub. (8), consistent with lottery games under s. 565.27, Stats.
Tax 61.02(3)(b) (b) For on-line ticket games under s. 565.01 (6m) (a) 2., Stats., a chance received for consideration that may entitle a player to a prize as a winning ticket under sub. (8), consistent with lottery games under s. 565.27, Stats.
Tax 61.02(3)(c) (c) For break-open ticket games under s. 565.01 (6m) (a) 1., Stats., a chance received for consideration that may entitle a player to a prize as a winning ticket under sub. (8), consistent with lottery games under s. 565.27, Stats.
Tax 61.02(4) (4) "Low tier prize" means a lottery prize of $49.00 or less, unless otherwise specified in the retailer's handbook.
Tax 61.02(5) (5) "Retailer performance program" or "RPP" means a program that is designed to provide additional compensation, above the compensation provided under s. 565.10 (14) (b) 1. or 2., Stats., to retailers who meet certain performance goals identified by the Wisconsin lottery.
Tax 61.02(6) (6) "Selling location" means each cash register or instant ticket vending machine at a Wisconsin lottery retail outlet where a lottery ticket is sold.
Tax 61.02(7) (7) "Settlement date" means the date, designated by the administrator, by which the retailer is to return unsold instant scratch tickets for a particular game.
Tax 61.02(8) (8) "Validation" means the action of identifying whether a Wisconsin lottery ticket is a winning lottery ticket, by industry means consistent with the type of ticket under sub. (3).
Tax 61.02(9) (9) "Winning lottery ticket" or "winning lottery share" any lottery ticket under sub. (3), for which an appropriate validation under sub. (8) has been conducted by a representative of the lottery, which indicates that the lottery ticket is a winning ticket.
Tax 61.02(10) (10) "Wisconsin lottery" means the department of revenue Wisconsin lottery division, the executive assistant, the secretary or the deputy secretary of revenue.
Tax 61.02 Note Note: Section Tax 61.02 interprets ss. 565.10 and 565.12, Stats.
Tax 61.02 History History: Cr. Register, March, 1989, No. 399, eff. 4-1-89; correction in (7) made under s. 13.93 (2m) (b) 6., Stats., Register, March, 1995, No. 471; renum. (1) to (7) to be (2) to (5), (7), (8) and (10), cr. (1), (6) and (9), Register, October, 2000, No. 538, eff. 11-1-00.; CR 01-088: am. (2), r. (3), renum. subs. (4) to (10) to be (3) to (9), and am. (6), (7) and (9) as renumbered Register February 2002 No. 554, eff. 3-1-02; CR 04-083: am. (2), (3) and (4), cr. (3) (a) to (c) and (8), renum. (8) and (9) to be (9) and (10) and am. Register April 2005 No. 592, eff. 5-1-02; CR 07-087: cr. (1m), am. (6) Register April 2008 No. 628, eff. 5-1-08.
Tax 61.03 Tax 61.03 Procedure for selecting and renewing contracting retailers.
Tax 61.03(1) (1) Any person may apply for a contract to sell lottery tickets by submitting to the Wisconsin lottery a completed application for a lottery retail sales contract. Applications are available upon request by contacting the Wisconsin lottery. A nonrefundable check for $75.00 made payable to the Wisconsin lottery shall accompany each application for a contract. A nonrefundable electronic fund transfer or check for $25.00 made payable to the Wisconsin lottery shall accompany each application for a contract renewal.
Tax 61.03 Note Note: Applications and application fees should be mailed or delivered to Wisconsin Lottery, 2135 Rimrock Road, PO Box 8941, Madison WI 53708-8941.
Tax 61.03(2) (2) The administrator shall examine the completed application, and based on criteria under s. 565.10 (2) to (5), Stats., and s. Tax 61.04 (1), shall either grant a contract or deny the application. The administrator shall grant the contract or deny the application within 35 business days after the Wisconsin lottery receives the completed application and application fee under sub. (1) or within 35 business days after the administrator completes a credit check under s. Tax 61.04 (1) (a), whichever is later.
Tax 61.03 Note Note: Section Tax 61.03 interprets s. 565.10 (1) to (5), Stats.
Tax 61.03 History History: Cr. Register, March, 1989, No. 399, eff. 4-1-89; corrections in (2) made under s. 13.93 (2m) (b) 7., Stats., Register, March, 1995, No. 471; CR 01-088: am. Register February 2002 No. 554, eff. 3-1-02.
Tax 61.04 Tax 61.04 Criteria for selecting retailers.
Tax 61.04(1) (1) In addition to the criteria under s. 565.10 (1) to (5), Stats., the administrator shall determine if the applicant meets all of the following conditions:
Tax 61.04(1)(a) (a) The applicant or the applicant's business shall satisfactorily pass a credit check by the administrator.
Tax 61.04(1)(b) (b) The applicant shall affirm, in the contract application, that the applicant's business is physically secure and that the premise has a secure place to store lottery tickets.
Tax 61.04(1)(d) (d) The applicant is expected to sell a minimum monthly average of $400 worth of instant scratch tickets or instant break-open tickets or the sum of both each fiscal quarter, under s. 565.01 (6m) (a) 1., Stats., which shall be represented in any retailer contract or addenda. The administrator may deny a contract or a renewal to an applicant whose anticipated sales will not meet the stated minimum monthly average of sales per fiscal quarter or whose historical sales have not met the stated minimum monthly average of sales per fiscal quarter.
Tax 61.04(1)(e) (e) The applicant may not be an employee of the department of revenue Wisconsin lottery division, or the executive assistant, the secretary or the deputy secretary of revenue, per s. 565.05 (1) (b), Stats.
Tax 61.04(2) (2) If the applicant is a state agency or a local unit of government, the criteria under s. 565.10 (2) and (3) (a), Stats., and sub. (1) (e) shall apply to the entity's officers and directors.
Tax 61.04(3) (3) If the administrator finds that there are so many qualified applicants in a given geographic area of the state that, if all those applicants would be granted contracts to sell lottery tickets, there would be an undue concentration of retailers selling lottery tickets in that area, the administrator shall perform market evaluations on the retail establishments seeking a contract. Contracts shall only be granted to those retailers achieving the highest marketing evaluation score until the undue concentration is eliminated. The administrator shall, however, grant a sufficient number of contracts in a given area to serve public convenience.
Tax 61.04(4) (4) Any applicant who has a physical or mental disability that constitutes or results in a substantial handicap to the applicant's employment may be awarded a contract exclusively to sell lottery tickets if the applicant meets all of the following conditions:
Tax 61.04(4)(a) (a) Each applicant includes with the retailer application a letter from the Wisconsin division of vocational rehabilitation verifying that the applicant's disability is a substantial handicap to employment.
Tax 61.04(4)(b) (b) Each applicant meets all other criteria under subs. (1) to (3).
Tax 61.04(4)(c) (c) Each applicant's contract is approved by the administrator.
Tax 61.04 Note Note: Section Tax 61.04 interprets s. 565.10 (1) to (5), Stats.
Tax 61.04 History History: Cr. Register, March, 1989, No. 399, eff. 4-1-89; corrections made under s. 13.93 (2m) (b) 6., Stats., Register, March, 1995, No. 471; am. (1) (d), Register, October, 2000, No. 538, eff. 11-1-00; CR 01-088: am. (1) (intro.), (a), (e), (3), and (4) Register February 2002 No. 554, eff. 3-1-02; CR 04-083: r. and recr. (1) (b), r. (c), am. (d) Register April 2005 No. 592, eff. 5-1-05.
Tax 61.05 Tax 61.05 Fidelity bond.
Tax 61.05(1)(1) The Wisconsin lottery may require from each retailer a fidelity bond or an irrevocable letter of credit, or both, in the amount determined by the administrator and based upon the applicant's projected lottery ticket sales. The administrator may also require from each retailer the payment of interest for any outstanding unpaid balance that results from a dishonored retailer's check or electronic funds transfer, under s. Tax 61.08 (14) (d).
Tax 61.05(2) (2) The bond shall be payable upon the order of the Wisconsin lottery and may be obtained through an insurance agency or a bond and surety company. No individual bond may be less than $500.00. The letter of credit shall be drawn upon a financial institution with offices within the borders of the state of Wisconsin, and shall be drafted in a manner that allows the lottery to draw upon it without additional action taken by the retailer. No letter of credit may be accepted for which the lottery must pay a sum before it can draw upon the letter of credit.
Tax 61.05 Note Note: Section Tax 61.05 interprets s. 565.10 (13), Stats.
Tax 61.05 History History: Cr. Register, March, 1989, No. 399, eff. 4-1-89; CR 01-088: am. (1) Register February 2002 No. 554, eff. 3-1-02; CR 04-083: am. (1) and (2) Register April 2005 No. 592, eff. 5-1-05.
Tax 61.06 Tax 61.06 Certificate of authority.
Tax 61.06(1) (1) When a retailer is awarded a contract or a contract renewal, the retailer shall pay $25.00 to the Wisconsin lottery for a nonassignable and nontransferable certificate of authority. A certificate of authority is required for each location from which the retailer will sell lottery tickets.
Tax 61.06(2) (2) The retailer shall be issued a year-round certificate of authority if the retailer intends to sell lottery tickets all 12 months of the year. If the retailer intends to sell lottery tickets less than 12 months a year, the retailer may be issued a seasonal certificate of authority. If the retailer intends to sell lottery tickets throughout the year but only at selected times and places, such as at weekly events or at fairs and festivals, the retailer may be issued a temporary certificate of authority.
Tax 61.06(3) (3) If the certificate is lost, mutilated or destroyed, the retailer shall within 15 calendar days request in writing and submit a completed application for a duplicate certificate. The retailer shall pay $25.00 to the Wisconsin lottery for a duplicate certificate of authority.
Tax 61.06(4) (4) A mutilated certificate shall be surrendered to the administrator upon issuance of a duplicate. A lost certificate, when found, shall be surrendered to the administrator within 15 calendar days of its recovery.
Tax 61.06(5) (5) Payment under subs. (1) and (3) shall be by check or electronic fund transfer.
Tax 61.06 Note Note: Section Tax 61.06 interprets s. 565.10 (8) to (12), Stats.
Tax 61.06 History History: Cr. Register, March, 1989, No. 399, eff. 4-1-89; CR 01-088: am. (2) and (4) Register February 2002 No. 554, eff. 3-1-02.
Tax 61.07 Tax 61.07 Contract denial appeal procedure.
Tax 61.07(1) (1) If the applicant was denied a contract, the administrator shall notify the applicant, in writing, of the denial along with a brief statement why the applicant was denied a contract. The applicant shall also be notified that a request for reconsideration must be made by the applicant within 30 calendar days of the denial and that the request shall contain the information in sub. (2).
Tax 61.07(2) (2) Within 30 calendar days of the mailing of the denial, the applicant may request a reconsideration by filing with the administrator a written statement setting forth the applicant's legal, factual or equitable arguments and submitting any supporting documents. The request for reconsideration shall be deemed filed on the date it is received by the administrator.
Tax 61.07(3) (3) Within 20 calendar days of receipt of the request for reconsideration, the administrator may, in writing, request the applicant to submit any additional facts, legal and equitable arguments or documents that the administrator deems necessary to make a determination.
Tax 61.07(4) (4) The Wisconsin lottery's legal counsel shall compile a file containing all the material submitted by the applicant and any relevant material the administrator may have, including but not limited to, the completed application and credit check report. Legal counsel shall then review the file, research, if necessary, the applicable laws and rules and prepare an analysis and recommendation for the administrator's consideration.
Tax 61.07(5) (5) The administrator, after considering all the facts and arguments submitted by the applicant, and legal counsel's recommendation, shall independently evaluate whether to grant or deny the applicant a contract. Within 45 calendar days of the administrator's receipt of the request for reconsideration or any supplemental information and documentation requested, the administrator shall notify the applicant, in writing, of the determination. If the applicant is denied a contract, the notice shall include a written statement setting forth the reasons for the denial and notifying the applicant of the right to a hearing on the denial under s. 227.42, Stats. The applicant shall be notified that a request for a hearing must be made by the applicant within 20 calendar days and that the request must contain the information in sub. (6).
Tax 61.07(6) (6) Within 20 calendar days of the administrator's mailing of the final determination, the applicant may request, in writing, a hearing under s. 227.42, Stats. A request for a hearing shall be deemed filed on the date it is received by the administrator. A request shall contain all of the following:
Tax 61.07(6)(a) (a) The applicant's name and address.
Tax 61.07(6)(b) (b) The reasons why the applicant requests a hearing.
Tax 61.07(6)(c) (c) The facts that the applicant intends to prove at the hearing.
Tax 61.07(6)(d) (d) A description of the mistake the applicant believes was made, if the applicant claims that the denial of contract is based on a mistake in fact or in law.
Tax 61.07(6)(e) (e) Any supporting documents not previously submitted to the administrator.
Tax 61.07(7) (7) Within 20 calendar days of receipt of a request for hearing, the administrator shall grant or deny the request for a hearing, in writing. A hearing shall be granted if the criteria in s. 227.42 (1), Stats., are met, and the administrator shall reasonably notify the applicant of the time and place of the hearing. A hearing shall be denied if criteria under s. 227.42 (1), Stats., are not met, and the administrator shall inform the applicant, in writing, of the reason for denial.
Tax 61.07(8) (8) In the event that neither the applicant nor the applicant's representative appears at the time and place designated for the hearing, the administrator may take action based upon the record as submitted. By failing to appear, an applicant waives any further right to appeal before the Wisconsin lottery.
Tax 61.07 Note Note: Section Tax 61.07 interprets s. 565.10 (1) to (5), Stats.
Tax 61.07 History History: Cr. Register, March, 1989, No. 399, eff. 4-1-89; CR 01-088: am. Register February 2002 No. 554, eff. 3-1-02.
Tax 61.08 Tax 61.08 Retailer contract terms and conditions. The retailer's contract shall include all of the following terms and conditions:
Tax 61.08(1) (1)Contract period and sales authorization. The retailer's contract shall remain in effect for at least one year and shall expire on the date shown on the certificate of authority. The administrator may renew the contract. However, the retailer does not have a substantial interest in, or a vested legal or equitable right to, a contract renewal.
Tax 61.08(2) (2)Contract not assignable or transferable. The retailer's contract may not be assigned or transferred from one person or location to another.
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